Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as a. product costs b. factory overhead cost c. miscellaneous expense d. period cost

Question

Julia

Business

28 February, 21:16

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as a. product costs b. factory overhead cost c. miscellaneous expense d. period cost

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Answers (2)

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Adele · Answer 1

The correct answer is letter "B": factory overhead cost.

Explanation:

Factory overhead costs represent the costs of production other than the costs of direct materials and direct labor. Those costs are usually pooled later to be recorded with the costs of the total units produced. Examples of factory overhead are rent, utilities, depreciation, management wages or insurance.

Cello · Answer 2

The answer is B.

Explanation:

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Factory overhead cost is an indirect cost that applies to all the activities of a company. It is not directly related to a particular product. For example, the salary of adminstrative staffs is not directly related to a product being produced.